FAR Audits – Michigan (MI)
Federal Acquisition Regulation (FAR) – Michigan (MI)
Michigan government contractors, architectural and engineering firms, and other companies are often required to undergo a Federal Acquisition Regulation (FAR) audit. Organizations working on government contracts involving cost reimbursements, incentives, time and materials, and labor-hour contracts must comply with FAR 31 Regulations. This compliance ensures proper overhead rate calculations and adherence to cost accounting standards (CAS). For those bidding on government contracts, it is essential to prepare by developing a compliance strategy, optimizing indirect recovery costs, and improving financial controls. Whether your business is already subject to the requirement, or needs assistance preparing for FAR compliance, McKonly & Asbury can help.
FAR Audit Experience
McKonly & Asbury has extensive experience working with organizations subject to FAR 31 regulations, including conducting effective and efficient FAR audits and consulting with organizations that are preparing for compliance. In addition, our team publishes articles, leads learning opportunities, and actively participates in industry associations as a sign of our leadership in the industry. We view this as essential to stay current with the regulations, delivering timely insights so you can make informed decisions about the opportunities and challenges in front of your organization.
Industry Involvement
FAR Audit & Consulting Services
Our services help firms reduce risk, protect profitability, and gain a competitive advantage in government contracting:
FAR Overhead Audits
- Accounting system and internal control reviews
- Overhead rate calculation (indirect cost rates)
- Executive compensation review and analysis
- Audit preparation and support
FAR Overhead Consulting
- Policies and procedures development
- Indirect cost rate strategy
- Pre-award and incurred cost submission (ICS) reviews
- Year-round compliance support
FAR Audits - Frequently Asked Questions (FAQ)
Securing federally or state-funded contracts often requires compliance with Federal Acquisition Regulations (FAR). Failure to comply can result in disallowed costs, reduced reimbursements, or even failed prequalification, putting valuable contract opportunities at risk. Ensuring compliance through audits and consulting helps your organization avoid costly mistakes and stay eligible for government-funded projects.
A FAR overhead audit provides an independent look at your indirect cost rate calculations, accounting systems, and internal controls to ensure compliance with FAR. The audit helps ensure that overhead costs are classified correctly, allowable under FAR, and properly allocated. This process helps your firm avoid audit findings, maintain eligibility for government contracts, and optimize your cost recovery.
Our FAR consulting services provide expert guidance to help your organization develop policies and procedures that align with FAR and AASHTO. We assist with accounting process reviews, executive compensation analysis, and the creation of compliant cost allocation practices. Proactive consulting ensures you meet regulatory requirements and are always audit-ready, streamlining compliance and improving financial efficiency.
Contact our Michigan FAR Audit Team
McKonly & Asbury provides Federal Acquisition Regulation (FAR) Audits to companies and government contractors from our Pennsylvania office locations. Interested in learning more about the FAR consulting services offered to companies in Michigan? Complete the form below and a team member will follow up with you shortly.
About Michigan
The Michigan business community is a diverse and vibrant ecosystem that plays a crucial role in the state’s economy. With a rich history of entrepreneurship and innovation, Michigan has established itself as a hub for various industries, ranging from automotive manufacturing to technology startups. This narrative provides an overview of the key aspects of the Michigan business community, highlighting its strengths, challenges, and contributions.
Michigan’s business landscape is often associated with the automotive industry, as it is home to the “Big Three” automakers: General Motors, Ford, and Stellantis (formerly Fiat Chrysler). These automotive giants have a significant presence in the state, with numerous manufacturing facilities, research centers, and corporate offices. The automotive sector has been the backbone of Michigan’s economy for decades, providing thousands of jobs and driving innovation in areas such as electric and autonomous vehicles.
In addition to automotive, Michigan has a thriving manufacturing sector that extends beyond automobiles. Aerospace, defense, and advanced manufacturing companies are flourishing, contributing to the state’s economic stability. Michigan’s skilled workforce, strong infrastructure, and access to raw materials make it an attractive destination for businesses looking to expand or establish operations.